Electric two wheeler subsidies extended till March 2028

The centre has extended subsidies for electric two wheelers till March 2028. An incentive of up to Rs 5,000 per vehicle will continue to be offered under the PM E DRIVE scheme, a gazette notification said.

Officials said the government provisioned an additional Rs 1000 crore for electric two wheeler (e2w) subsidies, taking the total PM E-DRIVE outlay to Rs 11,900 crore. ET reported on July 22 that e2w incentives under PM E-DRIVE will be extended beyond July 31, 2026.

India has registered sales of 2.7 million e2w, against the PM E-DRIVE target of 2.5 million, launched in September 2024. Another 297 thousand large electric-three-wheelers have been sold in the country against a target of 289 thousand.


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The centre initially earmarked Rs 1,772 crore for subsidising e2w manufactured in the country under the PM E-DRIVE scheme. This has now been topped up to Rs 2,767 crore.

“Subsidies for e2w may need to continue till they reach 10% of total two wheeler sales,” a senior official told ET, adding electric three wheeler no longer require the incentives.

According to official estimates, Rs 1,259.91 crore was spent for subsidising e2w till March-end. Another Rs 907 crores was earmarked for electric three wheelers (e3w) of which Rs 737.35 crore was spent. The incentives offer was earlier extended beyond the March 31, 2026-deadline.

Electric buses have got the largest share of subsidy allocation under PM E-DRIVE with Rs 4,391 crore earmarked in the scheme for deploying 14,028 electric buses across large cities. Of these, the procurement process for 13,800 buses has concluded, comprising 10,900 buses under the first tender and 2,900 buses under the second.